The commercial property market is in something of a “sweet spot” at present, with improved investor confidence and low interest rates supportive of yield falls, and the growing economy likely to kick-start a rental value recovery. After an increase of 4% last year, and driven by further falls in yields, we expect IPD all-property capital values to rise by 8% this year. A rent-driven gain of 5% is likely in 2015. This translates into total returns of about 14% and 11% respectively. These forecasts are both above consensus and unchanged from the previous Analyst.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services